November 28, 2024
Glassnode recorded bitcoin sales by long-term investors thumbnail
Business

Glassnode recorded bitcoin sales by long-term investors

As Bitcoin rose to $100,000, hodlers got rid of a “significant” 507,000 BTC. The figure is down from March (934,000 BTC) as some market participants expect higher prices to liquidate positions, according to Glassnode. Following a flurry of consistent new ATHs, #Bitcoin is just a stone’s throw away from reaching a price of $100k per coin. Explosive price action trends […]”, — write: businessua.com.ua

Glassnode recorded the sale of bitcoins by long-term investors - INFBusiness

As Bitcoin rose to $100,000, hodlers got rid of a “significant” 507,000 BTC. The indicator is inferior to the pace of March (934,000 BTC), as part of the market participants expects higher prices to liquidate positions, according to Glassnode.

Glassnode recorded the sale of bitcoins by long-term investors - INFBusiness

Source: Glassnode.

The rate of daily distribution by this category of investors reached 0.27% of the coins at their disposal, which exceeds the value of March. Only on 202 of all trading days were they higher.

Glassnode recorded the sale of bitcoins by long-term investors - INFBusiness

Source: Glassnode.

The daily realized profit of hodlers jumped to a record $2.02 billion. In order to fully absorb this excess supply, active demand is needed, which may require a period of re-accumulation to “digest”, Glassnode emphasized.

Glassnode recorded the sale of bitcoins by long-term investors - INFBusiness

Source: Glassnode.

To analyze hodler activity, experts used the Sell-Side Risk Ratio:

  • High values ​​indicate that investors are spending coins at a large profit or loss relative to their cost. This condition is characteristic of periods when the market is most likely to need to rebalance. As a rule, such a picture is formed after a highly volatile movement of quotations.
  • Low values ​​mean that most coins are spent relatively close to their breakeven value. This is a sign of achieving a certain balance and low volatility, signaling the exhaustion of “profit and loss” in the current range.
  • Currently, the metric has reached the threshold of high values, which indicates a significant profit fixation. The current mark remains well below terminal levels in previous cycles.

    In other words, in previous bull markets, demand was sufficient to absorb supply even under similar relative distribution pressure, experts explained.

    Glassnode recorded the sale of bitcoins by long-term investors - INFBusiness

    Source: Glassnode.

    At the next stage, experts studied the amount of realized profit from November 2024 based on the term of holding coins, obtaining the following results:

    • from six months to a year — $12.6 billion;
    • from one to two years — $7.2 billion;
    • from two to three years — $4.8 billion;
    • from three to five years — $6.3 billion;
    • over five years — $4.8 billion.

    The data indicates that most of the selling pressure came from owners of coins between six months and a year old (35.3% of the total supply).

    “More experienced investors remain cautious and may be patiently waiting for price increases. Such sales volumes may be typical of swing traders who have been accumulating funds since launch ETFs and planned to “ride” only the next market wave,” says the review.

    Glassnode recorded the sale of bitcoins by long-term investors - INFBusiness

    Source: Glassnode.

    Finally, analysts looked at the structure of realized price levels in the context of UTXO (URPD) to identify areas of high cost concentration. They found that only a few coins changed hands in the $76,000 to $88,000 range.

    Glassnode noted that this range has formed an “air gap” that could become an area of ​​interest if the market pulls back down before retrying to move above $100,000.

    Glassnode recorded the sale of bitcoins by long-term investors - INFBusiness

    Source: Glassnode.

    Earlier, experts called the current Bitcoin pullback a pause before the rise to $100,000.

    We will remind you that Pantera Capital predicted an increase in the price of the first cryptocurrency to $740,000.

    The source

    Related posts

    Should we expect a rise in the dollar exchange rate in December: a banker’s forecast

    unian ua

    Bitcoin Buying Plans Are Supercharging Stocks. Is This a Michael Saylor Redux — or Another ‘Long Island Iced Tea’ Fad?

    coindesk com

    Bitcoin’s Tumble to $91K Evokes Thanksgiving ‘Massacre’ of 2020

    coindesk com

    Leave a Comment

    This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More